stop of the bulgaria on it's sunday afternoon pleasure cruise many people now have gathered here hundreds have been coming throughout the morning to look at the lists on the wall of the missing and dead to lay flowers and candles and hundreds of cuddly toys for all the children that have been missing however there are also a growing number of questions at this very site as well a former captain of the ship of the bulgaria who was captain in two thousand and seven came and spoke to reporters about what he thought about the condition of the ship and he said that the ship should never have been sailing that it was essential and technically dead long ago let's have a listen to what he said. and i became captain of the vessel in two thousand and seven the ship had been renovated for a while before that is where we were big problems with engines little our generators but i repeatedly mentioned to the management all you were there was even an argument. so the captain saying

that the ship was already in big trouble long before this this happened other events another allegations and revelations have been coming out that point to the fact that the ship was far fit from from fit for purpose for sailing there's been reports that on the day of the voyage itself one of the engines kept repeatedly breaking down the captain was warned but he pressed on the electricity generator failed just before the ship began to sink so that no s.o.s. could be given a no tannoy instructions could be given on how to evacuate people but emergency exits were blocked and that two passing ships also didn't stop to pick people up criminal investigations have been opened into those various aspects of the case and new facts new revelations are not yet fully able to corroborate them but they all keep adding up to the picture that this ship was should never have been sailing on

the volga in the first place all of this will come out in the course of time but for those who have lost their relatives and for those who are still waiting for their bodies to be brought up from the bottom of the volga it does little to comfort them at the moment. this is the happy scene that should have seen this ship is designed almost identically to the bulgaria in this room almost identical to the one that children on that ship played in but for whatever reason their fate was very different. to any as crowds gathered in remembrance of those killed by the sinking of the volga pleasure boat it was the younger victims that seemed to cast the longest shadow.

these schoolgirls had lost one of their classmates. but the most we studied together for a year she never had arguments with anyone she was a very kind girl and was always ready to help. as divers reached the playroom one of the bokhari is upper decks they found the bodies of the children that had gathered there just before the boat sunk. once inside the boat the bodies were everywhere again the scorer's cabin most of them were wearing the life west divers now have the awful task of bringing the bodies to the surface those left behind can only wonder at how fast their families were torn apart. our colleague was on that ship she went on a cruise together with her family husband five year old son and all say she was pregnant and was to deliver her second baby in august says newtown d. yet only her husband managed to survive she and her son died.

and for those children left suddenly without parents the terrible truth they may not be able to comprehend for years she lost her mother and father we're old but will have to look after her and she's only want to hear. no is to tell her we can't she wouldn't understand but there is much that people don't understand about this disaster reports about the ship's engines failing about block to merchants the exits of the electricity failure that stopped any s.o.s. or evacuation instructions going out criminal cases have been opened into why two ships passing straight after the sinking didn't stop to pick up a single person due to why the aging vessel was allowed to sail in the first place but for those who have lost loved ones the case will never be closed bottom.

and what you are to live from moscow still have for you this hour deciding his fate will continue covering the one and high court session which will rule whether the extradition to sweden of the wiki leaks founder julian assange will go have. a fury over the phone hacking scandal gripping britain goes international as the u.s. senate takes aim at rupert murdoch's media empire. washington's plans of missile shield over europe has been labeled as a main irritant behind the why then kasman russian american relations by foreign minister sergey lavrov the u.s. has brushed off moscow's concerns over the project maintaining the shield only to protect against attacks from rogue states but some say it's taking advantage of posts it is to see through that he's going to check out reports. u.s. missile defense plans in europe are of course up for discussion here in washington foreign minister lavrov said russian news for him legally binding guarantees that

the european missile defense project will not threaten russia's security there has been words before washington has many times said that the system would not be against russia but moscow needs to have it on paper some analyst explained that this urge that russia has for getting everything on paper with promises in the past . that were not fulfilled for example when the soviet union collapsed russia was assured that nato would not be expanding towards these borders but it did it can do it continued recruiting new members on the bottom line is words are good but words in a legally binding agreement are better foreign minister lavrov said that's probably the most irritating issue in the relations between the two countries and there is a huge desire to live it behind and to rather turn it into an area of cooperation on the ground that being created on the basis of american national design of missile defense which was not accepted by us is a reasonable way to respond to what is your sieved as being the purpose of the system so we want to stick to the original agreement that there would be no

parts of the system which would create risks for the strategic stability and for the but then show the strategic stability area namely strategic arsenals of the participants of the system russia has offered building the missile shield in europe together but that offer was turned down nato says russia can participate but it can't be a joint project because russia is not part of nato so that moscow says if that's the case let's base our relations on agreements not just words the shield itself according to the state department will have the whole of europe covered my colleague alex a euro fifty went to romania where the u.s. plans to build the radar and found out what it means for the local population take a listen. the voice of the romanian village of the still cannot believe his luck after washington picked this place in romania's region to locate

a new raider base locals have been all smiles about hypothetical investment. when we first heard that the us would be able to reach our base here we were a little bit scared from the police who we were informed that having this piece would mean better infrastructure and possibly jobs as lou cools airbase in davis who was deserted for a long time not to have a second chance. proposed to consist of radio facilities and interceptor rockets it is scheduled to be built by twenty fifteen and will become instrumental in president obama's european anti-missile defense shield in the one nine hundred fifty s. an airbase in the town of davis cellar in romania was used by the soviet forces now with washington's plans to place a radar station here locals have a job that should book arrest changed its foreign policy again the place will be occupied by the chinese similar plans were no joke for some other european countries thousands in the czech republic and poland protested against the

initiative to have military bases on their soil with mixed results while the first line of interceptor missiles was eventually placed in poland the czechs suddenly pulled out of the end. in romania there have been no demonstrations like that at all there is a historical fact that makes one of the most pro american countries in the world it has been explained by our ancestors the better things and the companies came from the east everybody was expecting the american to rebalance the whole thing so there is this sentiment and this feeling that. the present of the us is contra balance and specifically the us is contra balance. the presence or. of russia in the region if there is the real case then what security would this new shield provide and most importantly difference from who not even two years since

barack obama restructured the bush era european shield scheme moskos delight over the us president's move was replaced by feelings of discontent and concern. with worry that washington does something before informing us of these actions it is unclear what exactly they are creating as soon as we understand that this is them won't be used against russia will have legally be. this tension will be resolved. despite being described as fruitful the recent summit between president with a different nato ambassadors in sochi broke no consensus on missile defense so experts say the issue will remain a thorn in the side for both moscow and washington at least until next year when the next nato russia council meeting will be held in chicago by the construction of the raider facility endeavor solo would most likely be in full swing. see reporting from davis and book arrest in romania. we get leaks founder julian

assange continues his fight against extradition at the high court in london sweden wants to question the world's most famous whistleblower over sexual assault allegations but his supporters fear extradition to the scandinavian country will open a way for the u.s. to get its hands on him aren't his lawyer and is covering the trial from outside the court building. today is the second day of what's expected to be a two day hearing that holds the appeal of jute in a song say but whether he's to be extradited to sweden we're expecting wednesday to be given a bit to evidence on the hall of the swedish prosecutor's office since yesterday was given a visit to his own defense i phones he left the court last night's completely tight lipped he didn't wave to any of his supporters who were standing outside the court he just walked away which must be a direct instruction from his new legal team that he has high especially to deal

with a steering the new legal team seem to have taken on a new strategy that much more conciliatory about this case a much more concerned with european door and specifically the european arrest warrant under which students request to be extradited has been requested the legal team auguring that the european arrest warrant is invalid because of discrepancies essentially between the allegations that have been made and the testimonies told the two alleged victims that a full counts to be considered ranging from coercion of rights to break and the defense team has said that there is nothing in the victim's statement that amounts to that and that no option evidence so a lack of consent in those statements and three of the full relegations they say wouldn't even amounts to crimes in the u.k. so it's very much the approach that that's taking hold a they are drawing attention to the fact that us almost has not been charged in sweden that he's wanted them maybe for questioning and they're saying has the

prosecution started has he actually been accused of anything and if not then the european arrest warrant is in we may be able to expect a verdict at the end of wednesday but we may know that the judge may refer the decision to another day he may put his off and give decision a few days or even a few weeks time we're hearing. laura amateur porting there from london long can find more from our website including the latest news. blogs and expert analysis some of the stories online for you including how old world famous bass food chain turned into a grocery store officially at least donaldson and russia serves up a smart move to save itself supersize tax bill. also third time lucky a russian rocket finally gives six american satellites a lift into orbit after two days of technical delays this morning are to dot com. and the world's two fastest growing economies india and china appear to have

reached an economic faceoff the giants have huge mutual export amounts but it's mostly raw materials on india's part while china sells manufactured goods the an even trade is putting new delhi at a growing disadvantage as explains. its dragon versus tiger in the battle for asian supremacies india and china two of the fastest growing economies with the world's largest population vying for power and prestige in asia and beyond where india led the way in i t and back office is china race to head in mobilizing its masses onto the factory floor fuelling a huge trade deficit and a reality india is forced to accept. the. things that india post world class space in nuclear programs yet struggles to

create every day jobs making every day goods something this cotton tycoon knows all too well it's cheaper for him to export to china to get the job done than let india buy it back then we make a profit of ten percent more in the international market than the domestic market ironically it's indian efficiency that's part of the problem with supply rapidly outpacing domestic demand. if you. then the cotton prices in india will crush and farmers will suffer even the original price this will increase the quantity of cotton and even the government is encouraging the export of cotton here in the cotton fields of india lies the heart of the indian chinese trade relationship more than seventy percent of the exports from india to china are raw materials like cotton however ninety percent of the exports from china to india are manufactured goods if india is selling well then why should it matter while having a twenty billion dollar gap with your next door neighbor puts power in their hands

and makes jobs in savings dry up at home and economists know that only by sewing up a successful manufacturing sector large unskilled workforce. but it's a blind spot it's leading to blind faith. and we should focus on the. rest of the. indian traders seem satisfied to because the set up means the money keeps rolling in what comes on. benefits in exporting is that we get a bigger volume of cotton and we also get paid on time but new delhi is worried knowing it has to cut its cloth before its economic run of luck is sewn up preassure there are t. indoor india. well the scandal surrounding rupert murdoch's media empire has gone

international after u.s. senators called for their own probe into the news corp company it follows allegations that some of murdoch's newspapers attempted to bribe new york policemen for access to the call records of nine eleven victims in britain the outrageous turn explosiveness details of the sheer scope of the hacking from royalty to murder victims begin to set in richard at is editor of the day online news service believes a scandal will grow to threaten murdoch's very hold on his entire media empire. but where this does become a question for national security is the idea that police is selling private phone numbers and private contact details of people like the royal family and the prime minister well this is not necessarily the same to sell these things to a newspaper as it would be to sell them to a terrorist organization but if you do you may be able to do so it's very serious the whole edifice of news international is deeply intertwined with the street machine all that has yet to come out and will cause

a lot more headaches but i think what people are. expecting is for the scandal to go up through the chief executive of news international to james murdoch and james murdoch himself many people say should step down whether he's for. scape without serious damage is also doubtful although i don't think he's going to retire or leave the helm of the company. now let's take a look at some other stories from around the world the struggle euro has been struck another blow after moody's one of the big three credit rating agencies downgraded ireland's debt to junk status the move is a warning to investors or as a bailed out economy verges on the brink of another crisis the same agency cars political and economic firestorm last week but it did the same to portugal's def rating it also prompted e.u. finance ministers to levy more regulation on credit rating. agencies.

french lawmakers have voted in favor of doing the country's military operation in libya the decision was supported by a majority of the lower house of parliament meanwhile french officials claim colonel gadhafi is representative told them the libyan leader is ready to discuss surrendering power. the taliban's biggest achievement in ten years and that's what the group told the assassination of the have brother of the afghan president karzai head of the kind of our province a volatile region on the border with pakistan jerry event die who back in two thousand and eight was held by the taliban for forty five days since the killing leaves washington with no one to rely on when it comes to securing the region. while the cars i was not just the governor or the shadow governor of kandahar he was the most powerful and the most popular person throughout all of southern afghanistan this shows that right now with the canadian troops pulling out and with

the u.s. trying to you know focus on eastern afghanistan feeling the south there is now a vacuum who is in power who can the west rely upon. the taliban have claimed responsibility for this but it's not clear that the taliban are responsible it could very easily be a power struggle i've also heard and others have reported that he was responsible for perhaps starting to bring the taliban together with the united states to negotiate their force someone would have had a definite reason perhaps pakistan perhaps the taliban to stop this we don't know yet who is responsible because they killed the person who had all the information. that was a pattern journalist and author gerry van dyke there well time now to take a look what's happening in business demetrius here with us.

and if you don't warm welcome to business and see the western world is sliding into an abyss of debts of the pessimists are to be believed and even if the worst does not happen most analysts are predicting pitiful returns from developed markets over the next few years nationally investors are looking for growth with the sentiment switching heavily towards emerging markets such as china india and russia so more on this i'm joined in the studio by bench and vice president at h.s.b.c. hong kong and they do so much for being with us because so do you think it's a good idea right now to switch interests from developed markets to emerging markets like china while he is a good idea is to really consider diversifying some of the principal folios from the developed markets currencies into the r. and b. which is i think is a growing currencies it has been used for treatments but i think it will be used for investment as well ok so how do people actually invest in the yuan if it's not a fully convertible currency right that's true r. and b. is not yet fully convertible for the time being however we can see there's

a very developed offshore market in hong kong currently there is a five hundred fifty s. r. and b. in hong kong with a range of. products the whole call the policy is time to process born etc so this in hong kong people can invest with though we are and we should be fully convertible people going through forty trade r. and b. in hong kong do you see any progress of the liberalisation of the yuan and in the future near future yeah i think that's really we have seen to the reactions of. the currencies ever since two thousand and nine when china announced a policy of r. and b. trades at the most the development has been growing very quickly if you can extract would be r. and b. what are investment and foreign direct. bassman which would be likely to be announced by the end of this year with that there will be more investment options well do you think that if the yuan is actually liberalized say hypothetically we see it one day completely unpacked from the dollar wouldn't that rid the chinese

companies of the competitive advantage that they have right now well i think that has been addressed in trying to troll five years plan if you look at the economies of the structures of economics in china china will be moving from a pure exporting countries to economy which will rely on the domestic consumption as well yes been clearly written in vitro five year span so i think to answer the questions of whether there will be impacts to export no because the domestic consumption will compensate for any loss in the economy they're going to be the directions all right thank you so much ben chandler is president of h.s.b.c. hong kong thank you. all right let's move to the markets we have a couple of minutes left in the program is looking for direction pretty much all social now it's flat the positive this hour this is after investors still taking in the increasing u.s. crude supplies and crisis in europe or they may hold demand for raw materials

therefore gains are limited to just twenty seven cents on light sweet and eighteen on brant this hour in asia the stock markets are positive after data showed that china's g.d.p. expanded at a faster than expected pace from property stocks gained as a result we did see china overseas lead an investment adding more than six percent and one point financials are also pretty strong with china's construction bank in the lead and japanese stocks are also on the rise though moderately as a strong yen is dampening sentiment. european markets are trading in the black gains however are still limited after a downgrade of ireland by moody's investors service this is keeping as sovereign debt worries in focus berber. group is up three point seven percent in london make you one of the top again as this hour says the luxury goods maker reported revenues up thirty percent in the first. and after three hours of trading is the picture in

russia in its mixed quarter of percent my six down a notch look at some of the major movers on the my six burbank is posting very moderate gains of point one percent of the showing one hundred eighty percent jump in the first half net profits but that's under russian accounting standards carly is up one and a half percent still that's the e.u. lifted quotas of brought in from russia and coal miner responses containing its rallies up two point three percent after gaining two and a half the previous. business out he will be back in fifteen minutes time with an update stabilizing for headlines with nary.

wealthy british style olsen has moved on to the front. of the. markets why not. find out what's really happening to the global economy in cars reported on. in india oldies available in the movie the joys the hotel rooms the love with us the gateway photo the grand imperial truly the tallest west coast coromandel you

can know what's hotel closely shoto says don't need to go and. read the same the colonel was hoto as used to retreat. putting on the line from moscow these are the top stories one hundred people are now officially confirmed down after a russian cruiser sank in of all the river in the country's worst boating disaster a former captain of the vessel says it was not safe to say long before sunday's accident. washington's. missile shield over europe should chips away aberrations with moscow as the u.s. stands accused of taking advantage of and a saudi sentiment to secure future bases in you are. the world's most famous whistleblower julian assange continues his bid at the high court in london to fight extradition to sweden he's one of there for questioning

over sexual assault allegations by his supporters for years we will be only a staging post to the u.s. . coming up our special report on one of the most scenic regions in russia from lush woodlands to my the mountains there's a high cost the region presents a sight to behold discovering russia's next. region deep in the sun far east is one of russia's newest territories in two thousand and eight it brought together the chip. regions and with it a striking mix of asian and european culture. traveling around you can find buddhist temples spooling national parks and remote villages that still practice traditions the date back a thousand years but if you're flying here in the regions vibrant capital.

one of. course the best way to get to know is to have a local show you around and i know one lady here who's promised to send me a bit of what life is like in the fast lane. just over three hundred thousand people and it's a real mismatch of styles it's one of the only cities in russia that's based on a grid system and the downtown area has some beautiful european influenced architecture but the further you rolaids the more soviet and industrial it becomes . if you don't mind the teeth this is a great way to see the city. friends on the only bike isn't should. these guys prefer to ride off the roads.